POD POD: For what it's worth, I'm having the same problem. I bought a 3-user commercial version of Panda Antivirus Pro 2010. After installing it on a laptop running Win XP SP2, when it told me to Activate it, I clicked the button but nothing happened. I've tried to Activate it while my Task Manager was active and showing current Processes, but no change to the Process list occurred. I found, in \Program Files\Panda ... the program PSROL.exe which is the Activation Wizard. I ran it by double-clicking on it in the Windows Explorer Files list. After entering my Activation Code and email address, it asks me if I am already a Panda Client. I am so I entered my Client Number. After clicking 'Next', I see it connect to the Internet, but it won't connect to the Panda update server. I get the following error message:

"An error occurred during product activation and the process
could not be completed.

Error on connecting to the update server: The internet connection
requires a proxy server. Please check the advanced update
settings.

I do not connect to my ISP via a proxy server, so there must be something stopping my laptop PC from connecting to Panda's update server. My speculation is since (I think) Panda is headquartered in Spain, the update server that the program is trying to connect to is in Spain (I'm in the US), but the embedded link used to try to make the connection to their proxy server doesn't include a country code in the URL. (Or something along those lines -- I'm not an expert on how the internet is lashed together.)

After trying to solve the problem with Panda Antivirus Pro 2010 (google "0005:12029 Error Code" to find pages of possible solutions), I downloaded Panda Antivirus Pro 2011 from Panda's client area, but there was no change.

My experience with Panda's Tech Support lately is that it takes about a month to get a reply. That's too long to have a laptop unprotected so I've downloaded the free AVG 2011 Antivirus application and it's working fine. Over the years I've used Norton, McAfee, iolo's System Shield, Panda, and AVG. Right now, AVG is looking good.

Good luck to you. I'll keep an eye on this thread; maybe someone will find a solution.